Five Turkish banks, all in receivership and administered by the Savings Deposit Insurance Fund (TMSF), have merged their operation under roof of one of them, reported Anatolia news agency.

Four of the banks—Egebank, Yurtbank, Yasarbank and Sumerbank—had attracted no serious interest when the Turkish Banking Regulation and Supervision Agency earlier put up eight bailed-out banks for sale. To improve their general financial situation, it was decided that Egebank, Yurtbank and Yasarbank would be merged under Sumerbank, transferring all their activities and clients to the enlarged institution. The Banking Regulation and Supervision Agency then decided that Bank Kapital should join the merger, because its chances of being sold at this stage are remote.

In the meantime, Banking Regulation and Supervision Agency needs to structure more efficiently the operations of the merged banks, and this is expected to include employee dismissals and the closure of branches.

Anatolia reported that agency’s official announcement stated that deposit-taking licenses of the four banks were canceled, and their assets and liabilities were completely transferred to Sumerbank. – (Albawaba-MEBG)